Which of the Following Items Will Be Same for a Flexible

question 120

Multiple Choice

Which of the following items will be same for a flexible budget and a master budget?

• A) total variable cost
• B) total fixed costs
• C) total contribution margin
• D) total revenues

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Definitions:

Pricing

The act of determining the value that will be charged for goods or services offered by a business.

Gross Profit

The financial gain calculated by subtracting the cost of goods sold from total revenue.

Inventory

The total amount of goods and materials held in stock by a business, shop, or warehouse.

Administrative Expenses

Ongoing expenses associated with the general operation of a business, such as office supplies, salaries of non-sales personnel, and utilities.